Selling Put Options in Smaller Trading Accounts

Tom Sosnoff and Tony Battista explain when to sell put options to take advantage of return on capital in a smaller trading account. The strategy they discuss allows investors to use capital more efficiently and increase their probability of success. tastytrade is a real financial network with 8 hours of live programming from 7am-3pm CT WATCH LIVE at https://www.tastytrade.com/tt/#/  Subscribe for FREE  and have full access to our segments on demand.

Comments

1. ANYWAY.....I like this video, Thanks
2. bearish in 2013 ? how did that work out for you ?
3. I'm primarily a put seller. My favorite strategy. Have done it at times on margin (with exit rules in place), and that has improved income generation as well.
4. I don't understand, how is 84% OTM 1 SD? If he is talking about a 15% chance to close ITM, that's about 4% below the price of SPY. 1 SD is roughly 70%. How is 15% 1 SD? 15% is 1.5 SD.
   
   Can anyone enlighten me?
5. A study to "prove" that in a bull market (SP500 went from 700 to 1400 during 2009-2012 ) selling ATM puts outperfroms selling OTM puts. Wow... next time make a study to "prove" you get wet when it rains. I don't get the point of disguising the obvious as science.
6. I could be wrong but what I'm hearing is that if the price doesn't go below the strike price you should be fine. Which means, why would you not sell puts very very far out of the money that is highly improbable to hit and have nearly a 100% chance of making a small profit every time? If a stock is at $10 and i seen $1 puts that expire in a week, as long as nothing disastrous happens it seems like that is almost guaranteed money.
7. So if you want to take a bullish position you should sell at the money puts?
8. Why does he wear that weird looking hat.
9. yes and if there is a market crash you will be fucked. Specially if you have a small account. Stick to vertical spreads noobs.
10. So exactly which broker will let you trade naked options in a SMALL account? Last time checked the requirement was 10,000-$100,000?
11. bastards!
    
    4 years data
    
    chosen 4 years to mislead people and appear intelligent
    shame on people like you shame!
12. The ATM puts generated 3x as much return as the 1 SD, but since it takes 3x as much capital to write an ATM put as opposed to a 1 SD put, the ROC for both come out to be about the same.
13. Be careful when you decide to sell options, this video has some misinformation, if you take a look to the SPY graph between 2009 and 2012, you will notice that the graph is most of the time going up, if you sell PUT when the underlying is going up you always win, but I wonder what had happened if they have done the same exercise selling CALL´s instead of selling PUT´s?
    Remember if the underlying goes against you and you don´t close or rollover your position your loses will be huge!!
14. Wait how much money did he use to make that P/L ?
15. 2000 USD of "profit" in 4 years ? Or I have understood wrongly ?
16. IF your gonna sell puts, stick to SPY puts. You dont want to sell puts on something that could go to zero.
17. So in TD ameritrade it will not let me sell puts because of buying power... any way around this?  i dont understand why it allows a more risky strategy of buying a straddle but wont let me create an iron condor??  please answer thanks
18. What do they mean by " We have shown that managing winners and selling premium when IV percentile is above 50% can vastly improve ROC and Probability of success " @ 08:36 Are they saying only sell when the Implied Vol> %50 ?
19. Seems like alot of people are spooked by this concept because of the lack of control they have while waiting til expiration. Think of it this way. If you treat your IRA like an insurance company that occasionally takes hits but in the long run wins through probability you should be fine. When you do this with ETFs in particular, the fact that it is diversified helps make your trades more congruent with the probability. Also it is highly unlikely that the even if you get stuck with the etf that it will go down to zero. Keep selling insurance until you get put the stock at a discounted price. Then start selling calls to further remove cost basis. In the long run, the premium you collect will outpace just buying and holding the etf. The removal of cost basis means that the volatility of the stock wont matter knowing you already got your money back. Using slow stochastic or RSI will only amplify your success. Its kind of a no brainer when compared to blindly dollar cost averaging into etfs.
20. Exactly!